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2019 (1) TMI 1381 - AT - Central ExciseCenvat credit disallowed - Clearance of goods directly from the job worker premises - Unregistered premises / division of the same assessee - Notification No. 39/2001 dated 03.07.2001 - Penalty - Confiscation of raw material - Trade Notice 36/2003 dt. 27.03.2003 - Held that: - from the letter dated 05.05.2005 of the appellant that they have stated all the facts of job work right from the setting up the Jamnagar Mobile Plant upto discharge of duty by SP and SSTP Division. The revenue has alleged that even though they had permitted the clearance of the finished goods directly from the job worker but their objection to direct receipt of raw material at job worker premises i.e. Jamnagar mobile Plant and the clearance of the finished goods directly to customer is only paper transaction. We are of the view that the principal manufacturer as well as the job worker both are merely Division of RTML. It is only a case where one division allotted the work to another. The demand of cenvat on the one hand from the principal manufacturer on raw material which reached to the job worker and demand of duty from the job worker on the finished goods manufactured from such raw material itself proves that the raw material was used for the intended purpose only. Thus in such case the cenvat credit to the principal manufacturer i.e SP and SSTP Division cannot be denied. We also find that one of the reason for demanding duty from the job worker unit is that the certificates issued under Notification No. 108/95 – CE dated 28.08.1995 did not contain its name. In this context we find that it is not disputed that the job workers had manufactured finished goods on job work basis on behalf of principal who has cleared the goods to the intended recipient. In such case we do not find any reason to demand duty from the job worker. As far as demand of cenvat credit against SSTP plant and SP plant is concerned we find that it is not in dispute that the goods were manufactured on their behalf by Jamnagar Mobile Plant who is job worker. Thus for all purposes it is SSTP and SP Plant who are the principal manufacturer and the credit has been rightly availed by them. Further once both the plants were given permission to clear the job work goods directly from the premises of the job worker, it itself shows that both the divisions were considered as principal manufacturer and eligible for credit of the raw material so used by the job worker. As regard contention of the Appellant that the demands are time barred, we find that the issue involved is interpretation of job work rules and procedure and not of causing intentional loss of revenue. Whatever goods were cleared were either exempted from duty under Notification No. 108/95- CE dated 28.08.1995 or were cleared for exports or were cleared into domestic market on payment of applicable duty. All the receipts of raw material and the clearance of finished goods stands recorded in statutory books. Moreover it is also a fact that all the division which availed credit or from which the finished goods were cleared belong to the same company and the duty if payable by one division was availed as credit to other division or was refundable - decided in favor of the assessee.
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